IRS Reminds Those with Foreign Assets of U.S. Tax ObligationsIR-2013-54, May 23, 2013 — The IRS reminds U.S. citizens and resident aliens, including those with dual citizenship who have lived or worked abroad during all or part of 2012, that they may have a U.S. tax liability and a filing requirement in 2013. The filing deadline is Monday, June 17, 2013, for U.S. citizens and resident aliens living overseas, or serving in the military outside the U.S. on the regular due date of their tax return.

Publication 3112 IRS e-file Application and Participation (Revised 05-2013) is now available for download on http://www.irs.gov/pub/irs-pdf/p3112.pdf. This publication provides important information for Tax Professionals and Authorized IRS e-file Providers regarding applying and participating in IRS e-file.

REG-106796-12 - These proposed regulations provide guidance on the application of section 162(m)(6). Section 162(m)(6) limits the allowable deduction for remuneration for services provided by individuals to certain health insurance providers. Section 162(m)(6) was enacted as part of the Patient Protection and Affordable Care Act (Public Law 111-148, 124 Stat. 119, 868 (2010)).

Rev. Proc. 2013-27 - This revenue procedure provides guidance with respect to the United States and area median gross income figures that are to be used by issuers of qualified mortgage bonds, as defined in § 143(a) of the Internal Revenue Code, and issuers of mortgage

credit certificates, as defined in § 25(c), in computing the income requirements described in § 143(f).

Rev. Proc. 2013-26 - This revenue procedure provides rules by which the Internal Revenue Service will allow a taxpayer to use the proportional method of accounting for original issue discount (“OID”) on pools of credit card receivables under section 1272(a)(6). The proportional method allocates to an accrual period an amount of unaccrued OID that is proportional to the amount of pool principal that is paid by cardholders during the period. This revenue procedure also describes the exclusive procedures by which a taxpayer may obtain the Commissioner’s consent to change to the proportional method. Rev. Proc. 2011-14 is modified.

Notice 2013-38 Empowerment Zone Designation Extension - This notice explains how a State or local government amends the nomination of an empowerment zone to provide for a new termination date of December 31, 2013, as provided for by § 1391 of the Internal Revenue Code, as amended by § 753(c) of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, Pub. L. No. 111-312, 124 Stat. 3296 (December 17, 2010) (TRUIRJCA), and § 327(c) of the American Taxpayer Relief Act of 2012, Pub. L. 112-240, 126 Stat. 2313 (January 2, 2013) (ATRA).

IRM Procedural Update SBSE-05-0313-0460, Changes to Streamlined IA Over $25,000 Criteria, updated guidance on installment agreements to incorporate criteria for processing agreements greater than $25,000, the Small Business/Self Employed Division said in a memorandum issued May 10.

Memorandum SBSE-04-0413-037, the purpose of this memorandum is to disseminate the new Letter 5154, Employment Tax Reply to Request for Reconsideration of Assessment. It replaces Letter 693, Reply to Request for Reconsideration of Assessment, currently used in all Claim for Abatement cases.

Memorandum SBSE-05-0413-035, dated April 30, 2013, titled, Principal Residence Suit Foreclosure Recommendations is to provide interim guidance on policies and procedures for suits to foreclose the tax lien on the taxpayer’s principal residence. These procedures will be incorporated into Internal Revenue Manual (IRM) 5.17.4.8, IRM 5.17.12.20.2, and IRM 25.3.2.4.5.

The IRS will be making changes to the Schedule M-3 filing requirement for taxpayers with assets between $10M-$50M for Forms 1120, 1120-C, 1120-F, 1120S, 1065 and 1065-B. These taxpayers will be permitted to file Schedule M-1 in place of the Schedule M-3 Parts II and III. These changes will be effective for tax years ending on December 31, 2014, and later. No changes are currently planned to the Schedule M-3 requirements for Forms 1120-L, or 1120-PC, nor for Form 1120 taxpayers filing as a mixed group.

Notice 2013-34Credit for Carbon Dioxide Sequestration - 2013 Section 45Q Inflation Adjustment Factor.This notice publishes the inflation adjustment factor for the credit for carbon dioxide (CO2) sequestration under § 45Q of the Internal Revenue Code (§ 45Q credit) for calendar year 2013. The inflation adjustment factor is used to determine the amount of the credit allowable under § 45Q. This notice also publishes the aggregate amount of qualified CO2 taken into account for purposes of § 45Q.

T.D. 9616Final regulations under section 6045 provide guidance to brokers who must report basis for the sale of a debt instrument or an option. The final regulations under sections 6045A and 6045B provide guidance to brokers for transfers of debt instruments and options and to certain issuers of securities for corporate actions that affect the basis of a debt instrument or an option. The final regulations under section 1275 provide guidance to an issuer when a debt instrument that is not registered with the SEC on the date of issue is registered with the SEC at some later date. Temporary and proposed regulations under section 6049 provide guidance to a broker who must report interest or OID income on a debt instrument that has either bond premium or acquisition premium.

REG-154563-12Final regulations under section 6045 provide guidance to brokers who must report basis for the sale of a debt instrument or an option. The final regulations under sections 6045A and 6045B provide guidance to brokers for transfers of debt instruments and options and to certain issuers of securities for corporate actions that affect the basis of a debt instrument or an option. The final regulations under section 1275 provide guidance to an issuer when a debt instrument that is not registered with the SEC on the date of issue is registered with the SEC at some later date. Temporary and proposed regulations under section 6049 provide guidance to a broker who must report interest or OID income on a debt instrument that has either bond premium or acquisition premium.

REG-160873-04Proposed regulations relate to the penalty under section 6708 of the Code for failing to make available lists of advisees with respect to reportable transactions. A public hearing is scheduled for July 2, 2013.

Notice 2013-29Under the American Taxpayer Relief Act of 2012, Pub. L. No. 112-240, 126 Stat. 2313, a qualified facility (as described in section 45(d) of the Code) will be eligible to receive the renewable electricity production tax credit (PTC) under section 45, or the energy investment tax credit (ITC) under section 48 in lieu of the PTC, if construction of such facility begins before January 1, 2014. This notice provides guidelines and a safe harbor to determine when construction has begun on such a facility.

Thursday, May 9, 2013

FYI: The 27th Annual California Society of Tax Consultants Summer Tax Symposium is being held in Las Vegas on June 2 to 5, 2013. Up to 25 hours total CE for EAs, CPAs and CRTPS. CRTPS can get 3 hours of CA CE.

Wednesday, May 8, 2013

I have also attached a flyer for the, West Coast Tax Representation Conference - Representation & Your Tax Practicetwo-day seminar for Enrolled Agents, CPAs, Attorneys and CTECs which will be held on June 26th, 27thin FosterCity, California.

Karen Hawkins, Director of IRS' Office of Professional Responsibility (OPR), and Peter Panuthos, Washington DC Tax Court Judge, will be among the speakers for this event. There is an intermediate and an advanced track where each track qualifies for 16 hours of CPE. See above attached flyer for additional information.

Please share the information with your members and colleagues. Select theblue links to see the full article.

Newsroom

Grant, Kay Named to IRS Leadership Posts IR-2013-47, May 8, 2013 — The IRS announced the selection of Joseph H. Grant as commissioner of the Tax Exempt and Government Entities Division and Sheldon Kay as Chief of Appeals.

The Internal Revenue Service (IRS) is requesting nominations for membership in the Information Reporting Program Advisory Committee (IRPAC) for a three-year term beginning in January 2014.Written nominations must be received on or before May 31, 2013.

For your planning purposes, the first furlough days will be May 24, June 14, July 5, July 22 and August 30, with another two days possible in August or September. All public-facing operations will be closed on these dates, including our toll-free operations and Taxpayer Assistance Centers.

Proposed regulations would amend the rules regarding coverage for certain preventive services without cost sharing under the Patient Protection and Affordable Care Act.(IRB-2013-18, April 29, 2013)

Rev. Proc. 2013-26 rules by which the Internal Revenue Service will allow a taxpayer to use a simplified proportional method of accounting for original issue discount (“OID”) on pools of credit card receivables under § 1272(a)(6). The proportional method is intended to reduce administrative burdens and controversy for taxpayers and the Service.Revenue Procedure 2013-26 will appear in IRB 2013-22 dated May 28, 2013.

Rev. Proc. 2013-24 - This revenue procedure provides definitions of units of property and major components taxpayers may use to determine whether expenditures to maintain, replace, or improve steam or electric power generation property must be capitalized under § 263(a) of the Internal Revenue Code.

With more than 1 million visitors a month, EO’s website is a main source of information about tax administration for many in the tax-exempt sector. Continual updates and improvements help make the visit more efficient and rewarding for those readers.

Publication 1854 , How To Prepare A Collection Information Statement (Form 433-A), has been updated.

IRS Draft Tax Forms, including Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, and Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, for 2014.

West Coast Tax Representation Conference - Representation & Your Tax Practicetwo-day seminar for Enrolled Agents, CPAs, Attorneys and CTECs will be held on June 26th, 27thin FosterCity, California. Karen Hawkins, Director of IRS' Office of Professional Responsibility (OPR) and Peter Panuthos, Washington DC Tax Court Judge, will be among the speakers for this event. There is an intermediate and advanced track where each track qualifies for 16 hours of CPE. See above attached flyer for additional information.